Work Permit for Foreign Company Owners in Türkiye: 2026 Guide

Türkiye continues to position itself as a strategic investment hub connecting Europe, Asia, and the Middle East. With its large domestic market, competitive labor force, and investor-friendly reforms, foreign entrepreneurs increasingly choose Türkiye to establish and actively manage their businesses. However, while company ownership is open to foreigners, actively working in a Turkish company requires a valid work permit, even for shareholders and founders.

As Finlexia Turkish Accounting Firm, a leading full-service company formation and governance firm based in Istanbul and serving international clients since 2017, we regularly advise foreign investors on work permits for foreign company owners in Türkiye.

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Can Foreign Company Owners Work in Türkiye Without a Work Permit?

A common misconception is that owning shares in a Turkish company automatically grants the right to work in Türkiye. This is not correct.

Under Turkish immigration and labor law:

• Shareholders are not allowed to work unless they hold a valid work permit.
• Even if the foreigner is the sole shareholder or founder, performing managerial, operational, or executive duties requires authorization.
• Passive ownership (receiving dividends only) does not require a work permit.

Foreign investors who plan to actively manage their business must therefore combine company formation with a compliant immigration strategy.

Legal Basis for Work Permits for Foreign Shareholders

Work permits in Türkiye are governed by Law No. 6735 on International Labor Force, administered by the Ministry of Labor and Social Security. This law applies equally to:

• Foreign company owners
• Foreign directors and board members
• Foreign managers and authorized signatories

In practice, the Ministry assesses both the individual applicant and the company’s economic substance before granting approval.

Types of Work Permits Available to Foreign Company Owners

1. Definite-Term Work Permit

This is the most common permit for foreign shareholders:

• Initially issued for 1 year
• Renewable for 2 and 3-year periods
• Linked to a specific company and role

2. Indefinite Work Permit

Available only after long-term lawful residence and work history in Türkiye. This option is rarely applicable to first-time investors.

3. Independent Work Permit

Granted under exceptional circumstances for investors with high economic contribution. Approval criteria are strict and discretionary.

The New 500,000 TRY Capital Threshold (2026 Standards)

The most significant change facing foreign investors in 2026 is the drastic increase in the financial adequacy criteria. While the minimum capital to legally establish a Limited Liability Company (Ltd. Şti.) remains lower for general commercial purposes, the Ministry of Labor now enforces a 500,000 TRY minimum paid-in capital requirement for any company owner seeking a work permit.

It is a common pitfall for investors to look only at company formation costs and realize too late that the “legal minimum” for registration does not satisfy the “labor minimum” for a permit.

• The 20% Rule: In addition to the total company capital, the individual foreign applicant must personally own at least 20% of the shares, and their specific share value must also be at least 500,000 TRY.
• The USD 100,000 Exception: If your personal capital contribution exceeds USD 100,000, many of the standard financial and employment evaluation criteria may be waived, as you are classified as a “High-Value Investor.”

The “5 Turkish Employees” Rule: Timing and Compliance

The backbone of Turkish labor policy remains the protection of the local workforce. For every one foreigner employed (including the owner), the company must employ five Turkish citizens.

However, the 2026 regulations offer a crucial grace period for new founders. During the first six months of your initial work permit in Türkiye, you are not strictly required to have these five employees on the payroll. This allows you to set up operations, secure an office, and begin your recruitment process. By the seventh month, however, this ratio must be strictly met and maintained for all future renewals.

Director Residency and Management Structure

A frequent question we receive at Finlexia Turkish Accounting Firm concerns director residency. In Türkiye, a company director does not necessarily have to be a resident or a Turkish citizen. You can manage your Turkish entity from abroad.

However, if you intend to be the active manager on the ground, a work permit becomes mandatory. Without it, you cannot legally sign employment contracts, represent the company in person at government offices, or be registered as a “working” director in the Social Security (SGK) system. For 2026, the digital integration between the Trade Registry and the Ministry of Labor means that “passive” versus “active” management is monitored more closely than ever.

Mandatory Digital Transformation for 2026

Starting January 1, 2026, all newly incorporated companies are required to maintain their non-accounting books (such as the Share Ledger and Board Resolution books) in a digital format. This is a part of Türkiye’s “Paperless Trade” initiative.

When applying for a work permit, the Ministry will verify your company’s standing through these digital portals. Ensuring your company formation required documents are not only physically apostilled but also correctly migrated to the electronic MERSIS system is a prerequisite for a smooth permit approval.

The Step-by-Step Application Process

Obtaining your permit as a company owner is a two-stage process that requires surgical precision.

Critical Documentation Checklist

To ensure your application is not rejected due to technicalities, you must prepare:

1. Trade Registry Gazette: Proving the 500,000 TRY capital and your 20% share.
2. Tax Plate (Vergi Levhası): Proving the company is active.
3. Balance Sheet: For existing companies, showing a minimum turnover of 8 Million TRY (if the capital rule isn’t met).
4. Activity Certificate: Obtained from the Chamber of Commerce (ITO/ATO).

Pro Tip: In 2026, the Ministry focuses heavily on the “Economic Contribution” of the business. Providing a well-drafted business plan alongside your application can significantly increase the chances of a multi-year permit approval.

Required Documents for Work Permit Applications

Work permit applications involve parallel submissions by both the foreign applicant and the Turkish company. Typical documentation includes:

• Passport and notarized translation
• Shareholder structure and trade registry gazette
• Articles of association
• Signature circulars
• Employment contract or appointment decision

For a complete overview, please review our guide on company formation required documents, which aligns closely with work permit compliance.

Application Procedure: Step-by-Step

1. Online Application Submission
   Filed through the Ministry’s electronic system by the company.
2. Supporting Documents Upload
   Both individual and corporate documents must be submitted within 6 business days.
3. Ministry Evaluation
   The Ministry assesses economic contribution, employment ratio, and legal compliance.
4. Approval and Issuance
   Once approved, the work permit also serves as a residence permit.

The entire process typically takes 30–45 days, provided documentation is accurate and complete.

Work Permit vs. Residence Permit for Company Owners

Foreign investors often ask whether a residence permit alone is sufficient. The answer is no.

• Residence permits allow living in Türkiye
• Work permits allow working and managing a business

Company owners who require residency but not active involvement may explore director residency solutions. However, for hands-on management, a work permit remains mandatory.

Costs Associated with Work Permits

Work permit costs include:

• Government application fees
• Work permit card fees
• Professional legal and consultancy fees

Costs vary depending on nationality, permit duration, and company structure. For a broader financial overview, see our guide on company formation costs, as work permit planning should be integrated into initial investment budgeting.

Common Mistakes Made by Foreign Company Owners

Foreign investors often face rejections due to:

• Applying after company incorporation without proper planning
• Insufficient paid-in capital
• Missing Turkish employee quota
• Inconsistent job titles or corporate records

These issues are avoidable with professional guidance from the outset.

Renewal and Ongoing Compliance

Once granted, work permits must be:

• Renewed before expiration
• Maintained with continuous company activity
• Supported by tax filings, payroll records, and SGK registrations

Failure to comply may lead to administrative fines or permit cancellation.

Contact Us Work Permit for Foreign Company Owners in Türkiye

Navigating work permit requirements as a foreign company owner in Türkiye demands expertise in Turkish immigration law, corporate regulations, and bureaucratic procedures. Since 2017, Finlexia Turkish Accounting Firm has guided international entrepreneurs through every stage of establishing and operating businesses in Istanbul and throughout Türkiye, providing comprehensive company formation and governance services in multiple languages.

Our experienced legal team understands the unique challenges foreign business owners face when seeking work authorization in Türkiye. We manage the entire work permit application process on your behalf, from initial document preparation through final permit issuance, ensuring compliance with all regulatory requirements while minimizing delays and complications.

Whether you are establishing your first Turkish company or expanding existing operations, our multilingual professionals provide personalized guidance tailored to your specific circumstances and business objectives.

Contact Finlexia Turkish Accounting Firm today to schedule a consultation regarding your work permit needs. Let our three years of expertise in Turkish corporate and immigration law help you secure legal work authorization and focus on building your successful business in Türkiye.